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PacNet #72 – Is China Ready to Challenge the Dollar?

In the wake of the global financial crisis much has been written about the extent to which the United States can continue to play its role as the world’s predominant economic power and whether the emerging BRIC economies, particularly China, are poised to challenge the current financial and economic architecture. In recent months, speculation has focused on the future of the U.S. dollar, due largely to comments by senior Chinese officials that have led some commentators to conclude that the Chinese are ready to ditch the dollar and usurp its role as the world’s reserve currency with the renminbi.